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BIS Cosgrove Accountants Gold Coast & Brisbane

2019 Trends in Life, TPD and IP Insurance Claims Data

In case you missed it, the KPMG (on behalf of the Financial Services Council [FSC]) has released insurance claims data for 2019. This data takes a look at the primary causes of claims for Life Insurance, Total and Permanent Disability (TPD) Insurance and Income Protection (IP), the split across gender, and the proportion of claims paid. 

In addition to the amount and proportion of claims paid in the industry, there’s strong messaging around the prevalence of cancer, mental health, and accident related claims.

Key Observations:

In 2019, insurers paid out more than $12 billion to over 100,000 Australians. That’s over $33 million a day.

The claims data was as follows:

Life Insurance (97% of claims paid):

  • Cancer is by far the number one cause of death claims in men (39%) and women (61%).
  • Accidental death is much more prevalent in men (20%) than women (7%).

Total and Permanent Disability (TPD) Insurance (90% of claims paid):

  • Mental health claims comfortably top the list for men (24%) and women (27%).

Income Protection (IP) Insurance (95% of claims paid):

  • Accident is the top cause of claims across men (38%) and women (28%).
  • Mental health was only 5th on the list for men (10%), but a clear second for women (22%). Unfortunately, these figures are tipped to rise in 2020/21 as we further realise the impacts of COVID-19.

Critical Illness/Trauma (CI) Insurance (86% of claims paid):

  • For Trauma insurance, information was limited, the highest cause of claim was for cancer at 58%.
  • CI/Trauma wasn’t broken down to gender, however its’ importance is clear given the role of cancer as a cause of claim across Life/TPD/IP Insurance (particularly Life).



Mental Health Related Claims in 2019

Life insurers paid out $1.24 billion in 2019 to more than 9,500 Australians for mental health claims.
The (FSC) council says the claims are for an extremely wide and complex spectrum of conditions. The top five underlying types of mental health conditions account for almost half (46.9%) of all claims for mental health conditions, and are as follows:

  • 16.5% – Depression, including single and recurrent episodes
  • 13.4% – Unspecified anxiety disorders, for example panic or anxiety attacks
  • 11.3% – Reaction to severe stress, for example post-traumatic stress disorder
  • 3.6% – Alzheimer’s disease
  • 2.1% – Schizophrenia

Life can be unpredictable, so it’s important to ensure that you and your family are protected, in the event that the unthinkable happens and you need to make a claim.

Get in touch with us today to talk about your insurance options and how best to keep yourself and your loved ones protected. Submit a contact form or give us a call on 07 5598 3800.

If you or someone you know needs help, call Lifeline Australia on 13 11 14. Help is available.

The material and contents provided in this publication are general and informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.